This study ascertain the relationship between financial leverage and shareholders wealth creation of quoted industrial goods firms in Nigeria for a period of thirteen years spanning from 2008-2020. Specifically, this study ascertained the relationship between debt-to-equity ratio and cash value added. Ex-Post Facto research design was employed. The Panel data sets used in this study were obtained from the annual reports and accounts of thirteen (13) quoted industrial goods firms. Descriptive statistics of the dataset from the sampled industrial goods firms was employed to describe using the mean, standard deviation, minimum and maximum values of the data for the study variables. Panel Least Square (PLS) regression analysis and Hausman test were applied to test the hypothesis of the study. The specific findings showed that there is a significant and positive relationship between Debt-to-Equity Ratio and Cash Value (p-value = 0.0003<0.05). The study recommended inter alia that bankers and debt providers should help industrial goods firms by charging lower cost of debt. The lower cost of debt financing helps to bring down the required rate of return on the capital project being financed, thus, improving its profit margins.
Financial leverage, Debt-to-equity ratio and Cash value added
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